Classic cars

New cars depreciate by as much as 20% as soon as you drive them off the lot. In the following year, most cars lose up to an additional 10% of their value. By year three, many cars have lost nearly half their original value. Buying a used car that's a few years old means that major loss in value is already over. The most cost-effective way to buy and own a car is to buy a lightly used car after the largest depreciation, and then drive it for as long as you can.

Buying used cars online, or from a used car dealership, that are a few years older than the current model year can stretch your car-buying dollar, allowing you to move up in trims and options for less money. For example, if you spend $30,000 on a new car, you may discover that the money spent only gets you the base trim in some models. However, if that same vehicle is three years old, you may be able to purchase it at or near the top of the trim level for the same amount.

New cars, especially redesigned models, don't have a documented history of reliability. There's a reason why recalls often happen within the first year a vehicle is released. If you buy a used car, more often than not, you'll be able to easily pinpoint the issues to avoid, as well as gain an understanding of models that have dealt with the most issues.

When you buy a used car instead of a new one, it's important to be flexible about what you want and what's most important. With a new car, you can customize nearly everything about it. With a used car, you may have to choose a different color or trim level in order to get better mileage numbers or a cleaner history. You might also have to consider a different model entirely if the model you're looking for is hard to find with the options you want.

Safety technology evolves and develops quickly, which means that new features become available with nearly every model year. Buying used can sometimes make it more difficult to get the latest safety technology.

Similar to safety features, newer cars tend to get more fuel-efficient as technology improves. It's important to consider things such as the age of the vehicle, its fuel economy, and the actual savings you can pocket when buying used before committing yourself to a decision.